Don’t Make This HUGE Mistake Before Closing on Your New Home!

Are you under contract on a new home, or planning to buy one soon? Whether you’re a first-time homebuyer or a seasoned seller, there are a few critical mistakes you should avoid before closing to ensure the process goes smoothly. At Nelson Home Group, we’ve seen even the most well-meaning clients accidentally disrupt their own transactions, sometimes just days or even hours before closing.

Today, I want to share with you the top five mistakes to avoid before closing on your home. These tips could save you from delays, added stress, or even the risk of losing the home you’ve been working so hard to secure.

1. Opening New Lines of Credit

This is a big one. Once you’re pre-approved for a mortgage, avoid opening any new lines of credit. It might seem harmless to apply for a store card to get that discount on a new fridge, but it could wreak havoc on your home loan. Here’s why:

• Credit checks: Opening a new credit account triggers a hard inquiry, which can lower your credit score, even temporarily.
• Financial stability: Lenders will flag any changes in your financial situation, which could affect your loan eligibility.
• Final credit check: Lenders typically perform one last credit check right before closing. Even if you were pre-approved, any new lines of credit can impact your loan terms or delay the process.

The best advice? Wait until after closing to buy that new couch or appliance.

2. Scheduling Movers or Utilities Too Soon

It’s exciting to move into a new home, but don’t schedule movers or set up utilities for the day of closing. The closing process isn’t just about signing the paperwork; the deal isn’t final until the funds have been transferred and the title company confirms everything.

Imagine this: You sign your documents at 9 a.m., but the sellers aren’t signing until later in the day. If they need the proceeds from your sale to close on their next home, they can’t move out until the funds are in place. If you show up with movers or a utility company before the sale is finalized, it could create an awkward situation—or worse, legal issues.

The safest bet? Schedule your move and utilities for the day after closing. That way, any potential delays won’t throw your plans off track.

3. Planning to Move In the Same Day

As eager as you may be to move in, try not to plan for it on the same day as your closing. Even if everything goes smoothly with your paperwork, there are factors outside of your control that can cause delays. For example, we had a situation where a lender sent funds to the wrong title company, which delayed the entire closing chain by a full day. As a result, movers had to be rescheduled, causing unnecessary stress for everyone involved.

By allowing a buffer day between closing and moving, you give yourself a safety net against unforeseen issues.

4. Overbooking Your Schedule on Closing Day

Closing day should be a priority on your calendar, so be sure to keep your schedule flexible. Title and escrow companies work on tight schedules, and many only operate during business hours. You don’t want to be in a rush or scrambling to fit your signing appointment into a packed day.

I recommend booking your closing appointment weeks in advance to secure a time that works for everyone involved. This gives you and your agent enough time to adjust for any potential scheduling conflicts. If necessary, mobile notaries can sometimes meet you at work or home, but it’s best to plan ahead for a smooth process.

5. Forgetting to Renew Your ID

This might sound obvious, but you’d be surprised how often people forget about the expiration date on their driver’s license or passport in the hustle and bustle of moving. A valid government-issued ID is required to sign closing documents. If your ID expires before closing, you won’t be able to complete the process, causing delays.

Make sure your ID is up to date well in advance. If it’s close to expiring, start the renewal process early so you don’t run into any issues when your closing day arrives.

Final Thoughts

Buying a home is one of the most exciting and significant purchases you’ll make in your life. While closing day may feel like the finish line, following these steps will help ensure that everything goes as planned. Avoiding these common mistakes can keep the process stress-free and help you focus on the exciting part—moving into your new home.

Once you’ve closed, take some time to celebrate! Whether you’re selling your current home to move into something new or you’re a first-time buyer, this is a major milestone. So, enjoy it!

If you’re navigating the buying or selling process in the Kansas City area, my team and I are here to help. At Nelson Home Group, we provide expert guidance from start to finish. Don’t hesitate to reach out if you have questions or are ready to start your real estate journey.